What is High Technology?

1
What is High Technology?

• What is technology?
• What is High Technology?
• Definitions based on RD spending or intensity
• Number of technical employees
• Common characteristics
• Contribution of new technology to value delivered

2
Common Characteristics

• Technological uncertainty
• Market uncertainty
• Competitive volatility
• Others possible
• High first unit costs
• Demand side increasing returns
• IP
• Knowledge spillovers

3
Key Marketing Ideas

• Marketing concept and market orientation
• Value and Porters Value Chain
• Strategic Management Model
• Technology Adoption Life Cycle

4
Marketing Concept

• A firm will tend to perform well when it
• understands the needs and wants of targeted
  customers and prospective customers
• delivers superior value by meeting those needs
  and wants through coordinated activities
• does this while working toward organizational
  goals

5
Implications of Marketing Concept

• Need to target segments
• Need to understand motivations and behavior of
  customers and prospects
• Need to create an integrated package of products,
  services, communications, channels, and prices
• Need to manage so that meeting customer needs
  drives profits

6
Elements of Market Orientation

• Scanning and learning
• e.g. market research, evaluation of program
  results, satisfaction measurement
• Information dissemination
• e.g. intranet, team meetings, cross-functional
  team design, informal networks
• Enabling / reinforcing structure
• e.g. values, policies, reward system

7
More Market Orientation Elements

• Use of information
• e.g. strategic thinking, marketing planning,
  implementation planning, planned adaptation
• Execution effectiveness
• e.g. programs and tactics done well, activities
  coordinated, end results pursued and obtained,
  performance data collected and used

8
Porters Value Chain
Offering
Target
Product Service Image Comm. Channl Utils. Price
Support Activities
Direct Activities
Customers
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PORTERS VALUE CHAIN
INFRASTRUCTURE
SUPPORT ACTIVITIES
HUMAN RESOURCES DEVELOPMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
DIRECT ACTIVITIES
INBOUND LOGISTIC
OUTBOUND LOGISTICS
SALES MARKETING
SERVICE
OPERATIONS
10
Value Concepts

• Value sum of benefits minus sum of costs
• Implication value can be increased by raising
  benefits or reducing costs
• Value is Perceived Value in the eyes of prospects
  and customers
• Implication vendors view of value may be
  different than prospects / customers view
• A Reality perceptions may be malleable, but
  ultimately rely on experienced performance

11
Implications of Value Chain Definitions

• Segments exist
• Value comes from more than product
• Markets change concurrently with technology
  change gt uncertainty
• Marketing must be involved in product design and
  strategy
• Best technology does not always win, but
• Technology can be the reason you lose

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Value Network
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14
Technology Adoption Life Cycle
New Users
conservatives
CHASM
pragmatists
Skeptics - laggards
technophiles
visionaries
Time
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Segments in Adoption of New Technologies
OF NEW ADOPTERS
PRAGMATISTS OF DIFFERENT TYPES SOME
CONSERVATIVES?
CHASM
TECHNOPHILES
FIRST PRAGMATISTS
VISIONARIES
TIME